How Owner-Operators Report Themselves on the WH-347
— WH347.io Team
A sole owner working on their own federal contract occupies an unusual legal position — neither a standard employee nor fully exempt. Here's the DOL's guidance on owner-operator reporting, when you go on the WH-347 and when you don't, and how to avoid the most common mistakes.
Owner-operators on federal projects — the contractor who owns the business, signs the contract, and also swings a hammer on the job site — face a reporting question that the WH-347 instructions don't answer directly: do I put myself on the certified payroll? The short answer depends on your business structure and whether you're truly independent, but the nuance matters significantly.
The Core DOL Rule: Bona Fide Owners Are Exempt
The Davis-Bacon Act applies to 'laborers and mechanics' employed on federal construction projects. The DOL's longstanding position is that a bona fide owner of a business — someone who genuinely owns and operates the company, bears the financial risk of the enterprise, and is not in an employment relationship — is not a 'laborer or mechanic' and therefore is not subject to Davis-Bacon wage requirements for their own labor.
This exemption is not automatic. It requires that the individual genuinely be an owner of the contracting entity, not someone who has been designated an 'owner' as a payroll or compliance workaround. The DOL looks at the substance of the relationship, not the title.
What Makes an Owner-Operator 'Bona Fide'?
The DOL applies a multi-factor analysis. A bona fide owner-operator typically:
- Owns a meaningful equity stake in the contracting company (not just an honorary title).
- Bears personal financial risk — personally liable for the company's obligations or invested personal capital.
- Has the authority to bind the company contractually.
- Does not receive a fixed hourly wage from the company for on-site labor — compensation comes through profit distributions, draws, or salary as an officer.
- Operates independently, not under the direct supervision of another contractor on the same job.
A sole proprietor who is the prime contractor on a federal project and who performs physical work on that project is the clearest case of a bona fide owner-operator. A member of a small LLC or a shareholder in a small S-corp who works in the field generally also qualifies, provided their ownership is genuine and not nominal.
Do You Go on the WH-347 or Not?
If you are a bona fide owner-operator who is exempt from Davis-Bacon wage requirements, you generally do not need to include yourself on the WH-347 certified payroll report. Your labor on the project is not subject to the prevailing wage requirement, and there is no employee-employer relationship to document.
Frequently Asked Questions
Does an owner-operator have to appear on the WH-347?
A bona fide owner-operator who genuinely owns the contracting business and is not in an employment relationship is generally exempt from Davis-Bacon prevailing wage requirements and does not need to appear on the WH-347. However, some contracting agencies still require all on-site personnel to be listed. Confirm the agency's requirement in writing before the first payroll submission.
What makes an owner-operator 'bona fide' under Davis-Bacon?
The DOL looks at the substance of the ownership relationship: genuine equity stake, personal financial risk, authority to bind the company, and compensation through profit distributions or officer salary rather than hourly wages. Nominal ownership — a title without real ownership — does not qualify for the exemption.
How is a working supervisor different from an owner-operator?
A working supervisor who does not hold an actual ownership interest in the company is an employee, regardless of their job title or decision-making authority on the job site. They must appear on the WH-347 and must be paid at least the prevailing wage rate for the work they perform.
What should a sole-proprietor subcontractor submit for certified payroll?
A sole proprietor working alone on a federal project typically submits a certified payroll with no worker entries — because the owner is not a Davis-Bacon-covered employee — along with a signed Statement of Compliance noting owner-operator status. Some primes and agencies have a specific owner-operator certification form. Ask the prime contractor what documentation they require before the project starts.
Can a small LLC member claim the owner-operator exemption?
Generally yes, if the LLC membership interest is genuine, the member bears real financial risk, and the structure was not created as a compliance workaround. The DOL examines economic reality, not just the legal form of ownership. Consult a construction labor attorney if you are uncertain about whether your specific structure qualifies.
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